Colefax Group EBITDA jumped on 31.8% and Revenue increased on 6.9%
26 Jul 2018 • About Colefax Group (
$CFX) • By InTwits
Colefax Group reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Colefax Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's a lot of higher than industry average of 1.9%.
- CAPEX is quite volatile: £2m in FY2018, £4m in FY2017, £2m in FY2016, £2m in FY2015, £2m in FY2014
- The company has highly profitable business model: ROIC is 17.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 6.9%. During the last 5 years Revenue growth bottomed in FY2015 at -1.6% and was accelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 27.3 pp from -24.3% to 3.0% in FY2018.
Gross Margin decreased slightly on 1.4 pp from 55.1% to 53.7% in FY2018. During FY2014-FY2018 Gross Margin topped in FY2016 at 56.3% and was declining since that time. SG&A as a % of Revenue decreased on 3.2 pp from 51.5% to 48.2% in FY2018. During FY2014-FY2018 SG&A as a % of Revenue topped in FY2017 at 51.5%.
Net Income margin increased on 2.1 pp from 2.4% to 4.5% in FY2018.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 2.8% in FY2018. CAPEX/Revenue showed almost no change from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 3.6%. During FY2014-FY2018 CAPEX as a % of Revenue topped in FY2017 at 5.1%.
Return on investment
The company operates at good ROIC (17.6%) and ROE (14.4%). ROIC increased on 6.5 pp from 11.2% to 17.6% in FY2018. ROE increased on 7.1 pp from 7.3% to 14.4% in FY2018. During FY2014-FY2018 ROIC bottomed in FY2017 at 11.2%.
Leverage (Debt)
The company has no debt. Cash jumped on 36.8%.
Financial and operational results
FY ended 30 Apr 2018
Colefax Group ($CFX) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 78.035 | 76.796 | 76.879 | 80.475 | 86.052 | 6.9% |
| Gross Profit | 41.617 | 42.036 | 43.292 | 44.356 | 46.241 | 4.2% |
| SG&A | 36.695 | 36.999 | 38.279 | 41.419 | 41.520 | 0.2% |
| EBITDA | 7.104 | 6.704 | 7.200 | 5.657 | 7.456 | 31.8% |
| Net Income | 3.353 | 3.542 | 3.461 | 1.895 | 3.832 | 102.2% |
Balance Sheet
|
|---|
| Cash | 4.298 | 6.861 | 10.085 | 6.710 | 9.177 | 36.8% |
| Short Term Debt | 0.241 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 1.583 | 2.213 | 2.278 | 4.126 | 2.382 | -42.3% |
Ratios
|
|---|
| Revenue growth | 10.5% | -1.6% | 0.1% | 4.7% | 6.9% | |
| EBITDA growth | 32.9% | -5.6% | 7.4% | -21.4% | 31.8% | |
|
|---|
| Gross Margin | 53.3% | 54.7% | 56.3% | 55.1% | 53.7% | -1.4% |
| EBITDA Margin | 9.1% | 8.7% | 9.4% | 7.0% | 8.7% | 1.6% |
| SG&A, % of revenue | 47.0% | 48.2% | 49.8% | 51.5% | 48.2% | -3.2% |
| Net Income Margin | 4.3% | 4.6% | 4.5% | 2.4% | 4.5% | 2.1% |
| CAPEX, % of revenue | 2.0% | 2.9% | 3.0% | 5.1% | 2.8% | -2.4% |
|
|---|
| ROIC | 22.0% | 20.6% | 20.2% | 11.2% | 17.6% | 6.5% |
| ROE | 14.4% | 15.4% | 13.8% | 7.3% | 14.4% | 7.1% |
| Net Debt/EBITDA | -0.6x | -1.0x | -1.4x | -1.2x | -1.2x | -0.0x |
Peers in Household Goods & Home Construction
Below you can find Colefax Group benchmarking vs. other companies in Household Goods & Home Construction industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | | 0.4% | 6.8% | 21.4% | |
| Taylor Wimpey ($TW.) | | 16.9% | 17.1% | 7.9% | |
| Crest Nicholson Hldgs ($CRST) | 21.0% | 26.5% | 23.9% | 4.6% | |
| Depa Ltd ($DEPS) | | -15.4% | 5.5% | 4.0% | |
| Teco Electric & Machinery Co Ltd ($TECD) | -5.1% | -9.6% | 2.7% | 2.0% | |
| |
|---|
| Median (9 companies) | -5.1% | 5.2% | 5.5% | 2.0% | 0.9% |
|---|
| Colefax Group ($CFX) | | -1.6% | 0.1% | 4.7% | 6.9% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 57.7% | 59.1% | 61.2% | 59.7% | |
| John Lewis Of Hungerford ($JLH) | 52.4% | | 49.5% | 50.6% | |
| Abbey ($ABBY) | 25.8% | 30.6% | 33.1% | 33.7% | 31.0% |
| Crest Nicholson Hldgs ($CRST) | 28.6% | 27.5% | 26.7% | 26.4% | |
| Taylor Wimpey ($TW.) | 23.8% | 25.1% | 25.6% | 26.1% | |
| |
|---|
| Median (7 companies) | 25.4% | 25.5% | 26.5% | 26.4% | 31.0% |
|---|
| Colefax Group ($CFX) | 53.3% | 54.7% | 56.3% | 55.1% | 53.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Abbey ($ABBY) | 22.6% | 31.2% | 31.7% | 32.7% | 30.1% |
| Reckitt Benckiser Group ($RB.) | 26.3% | 27.2% | 25.8% | 25.7% | |
| Crest Nicholson Hldgs ($CRST) | 20.3% | 20.4% | 20.6% | 20.4% | |
| Taylor Wimpey ($TW.) | 18.6% | 20.2% | 20.8% | 17.8% | |
| Depa Ltd ($DEPS) | 4.8% | -8.1% | 6.6% | 12.3% | |
| |
|---|
| Median (9 companies) | 10.7% | 15.4% | 11.7% | 12.3% | 30.1% |
|---|
| Colefax Group ($CFX) | 9.1% | 8.7% | 9.4% | 7.0% | 8.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Abbey ($ABBY) | 8.0% | 8.0% | 5.3% | 5.5% | 4.6% |
| Reckitt Benckiser Group ($RB.) | 1.8% | 1.7% | 1.9% | 2.5% | |
| Teco Electric & Machinery Co Ltd ($TECD) | 3.6% | 3.5% | 2.9% | 2.0% | |
| John Lewis Of Hungerford ($JLH) | 9.1% | | 2.6% | 1.7% | |
| Depa Ltd ($DEPS) | 1.1% | 0.6% | 0.6% | 1.2% | |
| |
|---|
| Median (8 companies) | 1.1% | 1.4% | 1.9% | 1.5% | 4.6% |
|---|
| Colefax Group ($CFX) | 2.0% | 2.9% | 3.0% | 5.1% | 2.8% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Taylor Wimpey ($TW.) | 21.7% | 24.1% | 26.8% | 23.0% | |
| Crest Nicholson Hldgs ($CRST) | 22.2% | 22.0% | 23.5% | 22.5% | |
| Abbey ($ABBY) | 11.2% | 21.1% | 22.9% | 21.1% | 17.6% |
| Reckitt Benckiser Group ($RB.) | 19.7% | 20.3% | 19.1% | 12.9% | |
| Depa Ltd ($DEPS) | 1.8% | -10.8% | 4.1% | 11.4% | |
| |
|---|
| Median (9 companies) | 7.3% | 16.0% | 18.2% | 11.4% | 17.6% |
|---|
| Colefax Group ($CFX) | 22.0% | 20.6% | 20.2% | 11.2% | 17.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Reckitt Benckiser Group ($RB.) | 0.7x | 0.7x | 0.6x | 3.6x | |
| Teco Electric & Machinery Co Ltd ($TECD) | -1.3x | -0.3x | 0.4x | -0.1x | |
| Crest Nicholson Hldgs ($CRST) | 0.1x | 0.2x | -0.4x | -0.2x | |
| Taylor Wimpey ($TW.) | -0.2x | -0.4x | -0.5x | -0.7x | |
| Abbey ($ABBY) | -1.2x | -1.3x | -1.3x | -1.3x | -1.2x |
| |
|---|
| Median (7 companies) | -1.2x | -0.4x | -0.4x | -0.7x | -1.2x |
|---|
| Colefax Group ($CFX) | -0.6x | -1.0x | -1.4x | -1.2x | -1.2x |
